The industry's general fortunes are tied to economic conditions, despite various segments exhibiting differing trends according to shifts in customer preference.
Melbourne, Australia (PRWEB) September 26, 2014
Operators in the Art and Non-Vocational Education industry in Australia are highly fragmented, offering a variety of educational services to a diverse market comprising individuals and corporations. Although the various segments exhibit differing trends, due in part to shifting fads and preferences, the industry's fortunes are generally tied to economic conditions. According to IBISWorld industry analyst Jem Anning, “the industry's reliance on business customers, the exchange rate and the level of household discretionary income exposes it to some revenue volatility.”
Following the global financial crisis, business confidence levels fell significantly, leading to weaker demand from corporate clients. In an effort to cut costs and preserve profitability, businesses across the economy scaled back expenditure on discretionary services, such as professional development courses. “This led to industry revenue contracting over 2007-08 and 2008-09,” says Anning. Economic recovery has since led to higher growth for the Art and Non-Vocational Education industry, and IBISWorld estimates that industry revenue will grow at an annualised 2.8% over the five years through 2014-15, to $5.4 billion. The industry exhibits a low level of market share concentration, and there are no major players.
International student enrolments for ELICOS courses have declined markedly, falling from peak of about 1.1 million enrolments in 2008 to trough of 740,000 in 2012. The ELICOS segment of the industry in particular suffered over the beginning of the five years through 2014-15, due to the high Australian dollar and safety concerns following incidences of violence against international students. The implementation of the second stage of the Knight Review in March 2012 has relaxed student visa application rules. This, combined with a fall in the value of the Australian dollar, has boosted ELICOS student enrolments by 17.9% in 2013 on the previous year. This is expected to contribute to revenue growth of 2.0% in 2014-15. Demand for tutoring services has surged over the past five years, as parents have sought to provide their children with a competitive advantage to ensure acceptance into their preferred tertiary programs. This trend is expected to continue over the next five years as discretionary income increases.
For more information, visit IBISWorld’s Art and Non-Vocational Education industry in Australia report page.
Companies in this industry offer a range of education and training services. Industry operators include tutoring services, English Language Intensive Courses for Overseas Students (ELICOS) providers, driving schools and performing arts colleges. The industry excludes pre-schools, kindergartens, schools, higher education institutions, technical and further education (TAFE) colleges and sports instructors.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
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